EARNINGS RELEASE – November 2, 2017: Company Again Reports Record Third Quarter Earnings – Dividend Continued

Redwood Capital Bank, announced unaudited consolidated financial results for the three and nine month period ended September 30, 2017. The only locally owned and operated community bank holding company reported record third quarter earnings, highlighting the most successful quarter in the company’s history. Furthermore, the Board of Directors affirmed a quarterly dividend.

John Dalby, President and CEO commented, “Redwood Capital Bank’s third quarter results underscore the positive momentum by our talented staff, who continue to perform exceptionally well. We remain focused on expanding our footprint within the Humboldt County market and investing in the local community. From both financial and strategic perspectives, the Board of Directors and senior management are very pleased with the company’s performance.” In addition to its strong financial performance, Dalby applauded the company’s resilient network systems, which withstood the AT&T fiber outage that impacted many local businesses in early October.  “It was business as usual for us,” Dalby said. “Redwood Capital Bank’s backup connection allowed us to continue serving our customers without interruption.”

Total assets as of September 30, 2017 were $374.8 million; an increase of 13% over the June 30, 2017 and 12% from the September 30, 2016 reported figures. Total deposits stood at $344.4 million as of September 30, 2017, an increase of 14% over the June 30, 2017 and 12% over the September 30, 2016 figures. The company also reported modest loan growth for the quarter. Total loans as of September 30, 2017, net of unearned income, were $258.6 million, up 2% from the prior quarter and up 9% over the quarter ended September 30, 2016.

Net interest income for the three and nine months ended September 30, 2017 totaled $3,175,000 and $9,174,000, respectively, representing an increase of 4% and 5% over the three month ended June 30, 2017 and nine months ended September 30, 2016, respectively. The company also reported record net income for the third quarter of 2017 of $814,000 while earnings for the first nine months of 2017 totaled $2,162,000. The earnings represented a 22% increase over the June 30, 2017 quarter and an increase of 13% over the first nine months of 2016. The increase net income was attributed to decreasing credit costs, increasing non-interest income and strong net interest margin. Book value per common share, a common measurement of shareholder value, stood at $12.40 as of September 30, 2017, a 10% increase over the previous quarter and a 10% increase over the September 30, 2016 amount.

CEO Dalby continued, “Redwood Capital Bank takes tremendous pride in providing exceptional, high-touch customer service. This is the foundation for our success and the impetus of everything that we do. As the company grows, so does our offering of digital products and services, designed to make banking more accessible, convenient and secure for users. New digital solutions are on the way later this year and into 2018. We remain well-positioned to continue delivering a high-level of operating performance for the benefit of our customers, shareholders and community.”

Additionally, the Board of Directors declared a quarterly cash dividend of $0.065 per share, payable on November 13, 2017, to shareholders of record at the close of business on October 30, 2017. The dividend payment is equivalent to an annual rate of $0.26 per share or 1.51%, based upon a market price of $17.20 per common share.

For more information regarding Redwood Capital Bancorp, please visit our website at www.redwoodcapitalbank.com, contact Fred Moore, CFO, at (707) 444-9840, or stop by the headquarters and main office at 402 “G” Street, Eureka, CA 95501.

This press release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which the bank is conducting its operations, including the real estate market in California and other factors beyond the bank’s control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management’s view only as of the date hereof. The bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.